There’s a quiet revolution that’s transforming how multinational corporations operate. And no, it’s not happening in Silicon Valley boardrooms or on Wall Street trading floors. It’s all coming together in the bustling tech hubs of Bangalore, the gleaming office towers of Manila and the innovation corridors of Krakov. There’s a common thread that connects these seemingly unconnected locations—the presence of thriving GCCSs (Global Capability Centers) of many multinationals.
GCCS are wholly-owned subsidiaries or dedicated units established by multinational companies in locations outside their base. What’s special about them is that they are designed to deliver a comprehensive range of business functions, technology services, and innovation capabilities. While initially GCCS were considered to be cost-cutting outposts, they have now outgrown this humble purpose. They have transformed into sophisticated centers that stand tall as the beacon of digital transformation, research and development. In other words, they are often essential strategic profit centers that drive business innovation, growth, and competitive advantage.
Let’s take a look at how this transition came about. GCCs were initially established to take advantage of the lower operational and labour costs in regions like India and Eastern Europe. They focused primarily on support functions like IT, HR, and finance. But they gradually evolved to take on higher-value roles like R&D, advanced analytics, digital engineering, and product innovation. In 2025, India’s GCCs alone generated $60+ billion in direct gross value added through a workforce of around 2 million professionals. Interestingly, the per capita productivity of this sector is much above the national average and is comparable to that of advanced economies.
The question that begs an answer is the motivation that led to this transition. The answer lies in an interesting turn of events. When multinationals identified critical capability gaps earlier, they went about sourcing or training talent locally. But the digital transformation that has spread across the world in the last decade has allowed these multinationals to now source talent globally. And what better way than to expand the capabilities of an already established GCC to maintain the competitive cost advantage. Let’s take a closer look at some of the strategic imperatives that led to the expansion of GCC mandates.
access to specialised and emerging technologies
Companies are establishing or expanding GCCs to pioneer AI-first approaches that fundamentally transform business operations, enable new product development, and create innovative customer experiences. The natural progression to this imperative is that these centers are now developing capabilities in artificial intelligence (AI), generative AI (GenAI), automation, and machine learning. This is also supported by the availability of the necessary talent.
bridging the capability gap
Organisations use GCCs to solve key skill shortages in their home markets, especially in engineering, product development, and advanced analytics. For example, UK firms operating GCCs in India focus on digital and engineering talent unavailable or expensive at home. This allows for speed, scale, and innovation at lower costs.
cost efficiency combined with quality
While global costs to set up tech teams have risen, GCCs continue to offer lower costs compared to Western markets. This makes it cost-effective to house strategic capabilities in GCCs. And of course, quality remains at par.
geographical diversification and risk mitigation
Expanding GCC mandates helps companies diversify operational risk, reduce attrition, and leverage improved infrastructure and government incentives. This enhances resilience and business continuity.
The cumulative impact of these imperatives has redefined GCCs as engines of sustainable growth and organisational stability. GCCs also play an increasingly critical role in data management, analytics, and decision-making. They act as the centralised hub where vast volumes of data are collected, processed, and analysed to generate real-time business insights. Organisations are, in turn, able to improve operational efficiency with the help of these insights.
In addition to analytics, the scope of GCCs in cybersecurity and compliance has expanded significantly. As enterprises face growing regulatory complexities and heightened cyber threats, GCCs have become focal points for implementing robust security frameworks and ensuring compliance with evolving global standards such as data privacy laws and AI governance. By embedding specialised cybersecurity expertise and governance protocols, GCCs help safeguard intellectual property as well as sensitive customer information. This ensures that the organisation is able to offer uninterrupted service across geographies.
Recent market trends show that the global GCC market is projected to exceed $300 billion by 2032. This growth is driven by enterprises’ pursuit of competitive agility and has its own ripple effects. As GCCs continue embracing disruptive technologies and developing world-class digital talent, they will increasingly serve as indispensable innovation engines and strategic partners. Their transformation will enable their parent organisations to thrive in turbulent markets by combining agility, technological excellence, and sustained value creation.
